In a landmark election, the Labour Party has emerged victorious in the 2024 UK general election, ending 14 years of Conservative rule. Sir Keir Starmer is set to become the new Prime Minister, bringing with him a vision for significant change and progress. This result is not only a political milestone but also holds substantial implications for businesses across the UK, including Wales.
Ian Price, Director of CBI Wales, extended his congratulations to Sir Keir Starmer and the Labour Party, emphasising the importance of sustainable growth as a primary objective for the new government. He stated, “Delivering sustainable growth should be the defining mission for the new government. Business stands ready to bring its innovation, ideas, and investment to make that shared mission a reality.”
Price highlighted the clear mandate given to the new Prime Minister to make tough decisions that will invigorate the economy. He emphasised the need for a government that is proactive and dedicated to delivering results. “What firms need now is a government that’s ready to hit the ground running and is laser-focused on delivery,” he said.
Reflecting on the resilience shown by households and businesses through challenges such as Brexit, the COVID-19 pandemic, and geopolitical tensions in Europe, Price called for a renewed focus on economic growth. “With the economy picking up steam, now is the moment to get behind growth. Setting out a positive vision for the UK economy and leaning into our international leadership should be top priorities for the first 100 days,” he added.
Price also underscored the importance of a collaborative approach between government and business to attract global investors and achieve sustainable growth. “Building a partnership for prosperity between government – at all levels – and business holds the key to unlocking a revitalised pitch to global investors,” he explained. By working closely with businesses and devolved governments, the new UK Government can leverage the strengths of industry to drive transitions in net zero, the digital economy, and the future of work.
Paul Butterworth commends new Prime Minister and outlines business hopes
Paul Butterworth, CEO at Chambers Wales South East, South West and Mid, has extended his congratulations to the Labour party following their recent victory in the general election. In a statement, Butterworth highlighted the significance of the public delivering a clear and decisive parliamentary majority, expressing hope that this mandate will bring the stability and certainty businesses in Wales are seeking.
“The public have delivered them a clear and decisive parliamentary majority – hopefully they will use this mandate to provide the stability and certainty that businesses in Wales crave,” Butterworth said. He noted that the campaign had placed significant emphasis on revitalising the economy, a topic of great interest to businesses and the British Chamber of Commerce. Butterworth expressed optimism about Labour’s alignment with key economic recommendations, including closing the skills gap, growing exports, boosting productivity, and harnessing digital innovation.
However, Butterworth cautioned that these changes would not happen overnight. He stressed the importance of a collaborative relationship between Westminster and the Senedd in Cardiff, aiming for united policy thinking to drive the Welsh economy forward. He urged policymakers to listen to business concerns and take immediate, meaningful actions to address issues like low productivity, business investment, and growth strategies.
Butterworth also highlighted the necessity for early progress on business rates reform and improving trade relationships with the EU and other international partners. He acknowledged the challenges ahead but emphasized that government and business must work together for the national economy to grow and communities to prosper.
In closing, Butterworth expressed a readiness to collaborate with both the Welsh and UK governments to achieve these goals, ensuring a prosperous future for businesses and the broader community.
“It is essential that policymakers listen to business concerns and that Labour hits the ground running with meaningful action for businesses to finally crack low productivity, put Welsh business on a trajectory to a higher growth future, refocus on fast tracking existing projects here in Wales and invest in skills and infrastructure,” he concluded. “We look forward to working with both the Welsh and UK governments to achieve this.”
ACCA Wales urges new government to prioritise finance and economics in first 100 days
Lloyd Powell, head of ACCA Wales/Cymru said:
“It will be interesting to see how the Labour Government in Westminster works with the Welsh Labour Government in the Senedd to address the range of challenges facing the Welsh economy and society.
“The incoming Labour government must act swiftly, as the first 100 days in office are crucial for any new administration. ACCA would welcome outline timetables for addressing key issues, such as economic, fiscal and corporate governance reforms. A focus on increasing business confidence through improvements to the HMRC service, encouraging investment (both domestic and international) and supporting small business owners effectively with growth are all things ACCA has raised previously this year.”
Decisive election result a golden opportunity to plant the seeds of small business growth
Responding to the result of the General Election, Policy Chair of the Federation of Small Businesses (FSB), Tina McKenzie, said:
“Congratulations to the new Prime Minister and Government on their decisive election victory, and congratulations to the newly elected MPs from all parties.
“The clear result of the General Election gives hope that political stability can lead to economic stability and recovery.
“There’s a golden chance in the first 100 days of this new administration to plant the seeds of small business growth, and there are a range of policies FSB hopes the new Government will bring forward.
“These include measures to ease the cost of doing business and support investment and expansion. From tackling poor payment practices by big businesses to their smaller suppliers to reforming the not-fit-for-purpose business rates system.
“The upcoming King’s Speech should include a Small Business Bill to enshrine in legislation much-needed changes to better support small firms and the self-employed.
“Supporting and growing small businesses is good for jobs, good for communities in all parts of the country, and good for the whole economy.
“We’re looking forward to getting down to business and working in partnership with the new Government ministers and their teams – building on how we’ve engaged constructively with them in Opposition. This will ensure that the small business voice is heard clearly and the right actions can be taken to support existing entrepreneurs and encourage new ones.”
Ben Francis, FSB Wales Policy Chair, said:
“This is an opportunity to establish a new constructive partnership between the Welsh and UK governments, one which enables the delivery of a shared mission focused on building Welsh SMEs’ capacity and capabilities for sustainable growth.
“A key starting point will be to improve the delivery of regional investment so that it delivers strategic and transformative economic development projects that directly address the needs and aspirations of businesses throughout the Welsh economy.”
For businesses in Wales, this election result brings a promise of stability and growth. With a focus on economic development and collaboration, the new Labour government aims to create a conducive environment for innovation and investment. This alignment between government objectives and business capabilities is expected to enhance the economic landscape, benefiting Welsh businesses and the broader UK economy.
As the new administration takes shape, the business community in Wales remains optimistic about the future, eager to contribute to and benefit from the envisioned economic progress. The collaborative efforts between the government and businesses will be crucial in navigating the challenges ahead and achieving sustainable growth for the nation.
